Video circulating on social media shows the horse and its rider on the main street of Thames, purportedly on Guy Fawkes night - though the date it was filmed could not be confirmed.
The horse, named Coruba, later bucked its rider, who was still chasing after it when it galloped into the path of the car around 9pm on Sunday night.
The animal died instantly and the driver of the car walked away with minor injuries.
The horse’s owner, a keen bushman, is devastated by the loss of his “companion”, a Coromandel local told the Herald.
Graphic video shared online showed the horse running down the road, onlookers at first expressing surprise and amusement at seeing the horse on Rolleston St.
But that quickly turned to panic as the approaching car was spotted.
“Stop the car!” a voice exclaimed and bystanders attempted to flag the motorist down, before a sickening impact was heard.
Other locals who saw the animal that night took to social media to voice their concerns. One person claimed they had been forced to take evasion action earlier that night after coming across the horse and rider on the edge of town, believing the rider was struggling to control his horse.
That concern was shared by the Thames-Coromandel District Council.
Noting that council bylaws do not prohibit people from riding a horse in a public place, a council spokesperson said anyone bringing animals into a public place must keep them under control, and must do so safely and not cause a nuisance to other people, or pose a hazard to traffic.
“Riding a horse in a town centre on Guy Fawkes night when fireworks are likely to be set off may not be in the horse’s best interest,” the spokesperson said.
“We’d ask that animal owners ensure their animals are in a safe space if fireworks are likely to be going off and that people setting off fireworks do so in a safe manner and be mindful of their neighbours.”
Police said inquiries to determine the circumstances of the crash are ongoing and the Herald understands the horse’s rider has spoken with police about the incident.
The horse was not the only animal that reportedly died as a result of fireworks this year and animal lovers shared their anger online.
The Ban the Boom NZ page saw outraged animal lovers petitioning politicians to ban the sale of fireworks.
“You guys can make this happen - ban the sale of fireworks,” one woman wrote. “People are being injured, animals are dying. It’s about time NZ stopped this madness, or shall we wait until a child dies before you step up and do something?”
The SPCA also spoke out after Coruba’s death, repeating its calls for a ban on the private sale and use of fireworks.
“We are absolutely devastated to hear that it was reportedly fireworks that caused this tragic outcome, and our hearts are with the horse’s owner and the driver,” Dr Corey Regnerus-Kell, SPCA’s general manager of animal services, told the Herald earlier this week.
“SPCA receives dozens of calls relating to fireworks, especially around Guy Fawkes, including animal injuries, frightened animals, missing pets and, occasionally, abuse of animals.
“The loud noises and bright flashes of light can be very frightening and many animals become highly distressed, and this is exactly what has occurred here.
“We advocate for a ban on the private sale and use of fireworks in New Zealand due to the distress and harm they cause to animals. SPCA also advocates that fireworks, pyrotechnics and gas-fired explosions should never be permitted to be used at events involving animals due to the distress they cause animals.”